Transaction Network Services (NYSE:TNS) has been added as a service provider by the National Stock Exchange of India (NSE) to provide connectivity to NSE's co-location facility for international direct market access (DMA) clients, enabling direct access to the world's fourth largest stock exchange.*
TNS is the first global extranet provider to work with NSE and will connect its customers to its onsite co-location facility via TNS' Secure Trading Extranet (STE) Connecting once to the STE provides NSE customers with connectivity, which will support high-volume trading.
John Owens, TNS' Vice President of Exchanges & ECNs, said: "NSE is a leader in the Indian financial markets and we are delighted to be working with such an important venue as the first approved connectivity provider. TNS already provides a range of fully-managed, secure and resilient connectivity solutions to global stock exchanges around the world. This recent win further supports the reputation of TNS' trading solutions as well as our continued growth in the Asian market."
NSE's daily average volumes are almost $2.5million in the cash market and nearly $27 million in derivative trading.
In today's fragmented market, accommodating high frequency trading (HFT) is imperative. TNS' low latency solution provides NSE clients the opportunity to trade at the best prices via direct connectivity through to NSE's efficient co-location infrastructure. Buy-side firms can benefit from enhanced algorithmic trading and DMA by applying the mathematical and statistical technology required to determine high frequency algorithms and connecting them to markets at high speed, thereby allowing firms to execute trade cost-effectively. TNS' STE can facilitate critical volumes of trade for NSE, which dominates the equities and derivatives market in India and is reliant on secure, fast and low latency connections. TNS can assist firms to start operating at NSE's co-location facility, without worrying about setting up the infrastructure required to connect to such trading venues and engage in algorithmic trading.
Through the resilient and robust networking environment provided by TNS, NSE's customers can take advantage of a fully managed, co-location service. Outsourcing to companies such as TNS, who can take care of a company's requirements like infrastructure, operations, IT and hardware; make it more cost-effective for the company in the long run.
TNS' Secure Trading Extranet will also enable NSE customers to access TNS' 1,700 community endpoints, representing buy-side and sell-side institutions, market data and software vendors, exchanges and alternative trading venues, via more than 115 points of presence.
* The National Stock Exchange of India is the world's fourth largest stock exchange in terms of the volume of trading in the cash market and the fifth largest in derivatives globally.